BAX Filings — Baxter International Inc - FilingSpy
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Baxter International Inc
A maker of essential hospital supplies, Baxter produces sterile IV solutions, infusion pumps, parenteral nutrition, surgical sealants, smart beds, and patient monitors sold in dozens of countries. Founded in 1931 by Dr. Donald Baxter and surgeon Ralph Falk, the company created the first factory-made sterile IV solutions in vacuum-sealed glass containers, replacing the contaminated hand-mixed fluids hospitals once brewed themselves. In 2025 it sold its Kidney Care business, Vantive.
Q2 2026 revenue rose 5.3% to $2.96B while gross margin fell to 34.9% on higher manufacturing costs
Baxter's growth held at 5% as the hold and tariffs kept pressing margins. Revenue rose 5.3% to $2,960M and rose 33.3% to $0.24 versus a year earlier, while fell 0.4 points to 34.9% as higher manufacturing and supply costs outweighed $75M in . The business is growing sales but has not yet turned the margin pressure around.
Key takeaways
rose 5.3% to $2,960M in Q2 2026, with also at 5% after adjusting for the and currency.
sales increased 7% to $2.08B, led by up 12% and Infusion Therapies & Platforms up 6%, driving the .
declined 0.4 points to 34.9% from 35.3% a year ago as higher manufacturing and supply costs and product mix more than offset $75M in IEEPA .
Section summaries
Management's Discussion and Analysis
Q2 2026 net sales rose 5% to $2.96B, driven by Medical Products & Therapies, while gross margin fell on higher manufacturing costs.
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Consolidated grew 5% to $2.96B in Q2 2026, with also at 5% after adjusting for and currency.
sales rose 4% to $801M, with Care & Connectivity Solutions up 6% and up 2%.
from continuing operations improved to $510M in H1 2026 from $118M a year earlier, driven by favorable changes.
The company recorded $23M in business transformation charges and continues restructuring to address from the Kidney Care sale.
What changed
Q2 2026 of 34.9% did not recover from the 30.1% FY 2025 base as the impact and product mix pressure persisted; excluding special items margin fell further on manufacturing and tariff costs carried from Q1.
The shipment hold continued into Q2 2026 with no resumption of U.S. and Canada sales, consistent with the Q1 2026 status and the FY 2025 expectation of no meaningful sales while in effect.
was not disclosed this quarter; the last reported level was $9.4B at FY 2025, and the company had not given a new disclosure since the $3.81B repaid through Q2 2025.
returned to growth at 7% in Q2 after the Injectables & Anesthesia decline of 10% in Q1 and the 1% drop in Q3 2025, with up 13% in Q1 and 12% in Q2 leading.
Risk factors were restated with no material change from the 2025 Annual Report, so no new company-specific exposure was added this quarter.
What to watch
Q3 2026 to see if excluding-special-items margin recovers from the Q1 decline as tariff and supply costs persist.
Status and duration of the shipment hold and any resumption of U.S. and Canada sales beyond Q2 2026.
Next disclosure to track progress against the $9.4B FY 2025 level and management's net target by end of 2026.
sales trajectory after the 7% Q2 rise to see if IV destocking and fluid conservation ease.
Medical Products & Therapies sales increased 7% to $2.08B, led by Infusion Therapies & Platforms (up 6%) and (up 12%).
Healthcare Systems & Technologies sales rose 4% to $801M, with Care & Connectivity Solutions up 6% and up 2%.
ratio declined to 34.9% from 35.3% a year ago, as higher manufacturing and supply costs and product mix more than offset $75M in .
from continuing operations improved to $510M in H1 2026 from $118M a year earlier, driven by favorable changes.
The company recorded $23M in business transformation charges and continues restructuring to address from the Kidney Care sale.
Quantitative and Qualitative Disclosures About Market Risk
The company faces foreign exchange risk from non-U.S. revenues, primarily hedged with forwards, and reports a $7M sensitivity on a 10% USD weakening.
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Foreign exchange risk arises mainly from revenues in Euro, Australian Dollar, British Pound, Brazilian Real, Colombian Peso, and Canadian Dollar.
The company manages FX risk on a consolidated basis, using natural offsets and derivative/nonderivative instruments, but does not hedge all exposure.
are the primary tool for hedging forecasted transactions, recognized assets/liabilities, intercompany and third-party items, and foreign-currency debt.
A sensitivity analysis as of June 30, 2026 shows that a uniform 10% weakening of the U.S. Dollar against all currencies would change the net pre-tax liability of $2M on FX contracts by $7M.
The sensitivity analysis ignores offsetting movements in underlying hedged items and the possibility of currencies moving in opposite directions.
Turkey subsidiary uses since April 2022, with of $33M as of June 30, 2026; interest rate and other risks saw no significant changes in the quarter.